Investec is latest bank to add guaranteed funding before deadline
Investec Bank Australia (Investec) (Baa2/BBB) became the most recent bank to add tenor to its Australian maturity profile with the March 16 pricing of A$300 million (US$274.5 million) of government-guaranteed bonds. The issuer says while the demand for unguaranteed, longer-maturity issuance from smaller banks remains unknown it made sense to secure five-year funding under guarantee before the scheme's March-end expiry.Corporate pipeline pumping with Adelaide Airport to follow Transurban
The long-anticipated reopening of the Australian corporate bond pipeline commenced on March 15 with Transurban (A-/Baa1/A-) selling A$250 million (US$228.38 million) of four-year, fixed-rate medium-term notes (MTNs) as part of a planned extension of its maturity profile. A number of other issuers are also understood to be close to bringing deals to market, with a refinancing from Adelaide Airport (BBB/Baa2) the latest mooted offering.Red hot Aussie domestic market active on all fronts [UPDATED]
The Australian market continues to receive financial institution (FI) issuers warmly; one week after pricing the first two Kangaroo FIs in three years, Credit Suisse Sydney Branch (Credit Suisse) (A+/Aa1) demonstrated on March 11 that investors are as keen on debuts as they are on resurrections, while BNP Paribas Australia Branch (BNP Paribas Australia) (AA/Aa2/AA) also issued unguaranteed paper. Meanwhile the domestic securitisation market continues to fire and the year's first corporate deal is close to pricing.
Swap-plus pricing sought on new TCorp 2016
Analysts say the new April 2016 line launched by New South Wales Treasury Corporation (TCorp) (AAA/Aaa/AAA) on March 16 should offer a margin slightly above swap to offer fair value and maximise investor interest. Marketing range for the deal is understood to be 50-55 basis points over the April 2015 Commonwealth government securities (CGS), with 51 basis points over being the equivalent of flat to semi-semi swap.